Your Business Plan

Your
Business
Plan
Workbook
PREFACE
This workbook is prepared for both veterans and civilians who either want to start their
own businesses, or who want to expand and improve their businesses.
This is a very important aspect of business development and requires careful
undertaking by both the trainer and trainee.
This business plan handbook was developed in collaboration with a number of VOCA
volunteers, partners and organizations.
These include:
Organizations and Partners.
zSoroti Catholic Diocese Integrated Development Organisation (SOCADIDO)
zSoroti District Association of NGOs Network (SODANN)
zUganda Veterans Assistance Board
zVision Terudo (Teso Rural Development Organisation)
zWorld Learning, Inc.
zWorld Vision, Soroti Project office.
zAmerican Peace Corps
Volunteers
zMr Dave Hammond
zProf. Surrendra Singh
zMr. Clair Hein
zMs Donna Kerner
zMr. Bob Nottleman
Thanks goes to Dave Hammond whose TOT in January and February of 1996, provided
the backbone to this handbook. His input during the September/October, 1996 pilot TOT
for "Your Business Plan handbook" and "Your Business Plan workbook" were of
valuable benefit in the development of the materials. Donna Kerner's field testing of
these materials during veterans training and subsequent feedback from the same is also
highly appreciated. Appreciation also goes to Bob Nottleman for his contribution to the
materials during the January/February Grand ToTs.
Our appreciation also goes to Mr. Clair Hein and Prof. Surrendra Singh who worked
hand in hand with VOCA staff, Mr. Martin Owiny to develop "Your Business Plan
Workbook" and "Your Business Plan Workbook" and the Trainers Guide to the two.
Special thanks also goes to VOCA staff Ms Elsie Mukasa for the development of the
graphics, design and layout of these materials.
This handbook was funded by the United States Agency for International
Development (USAID).
HOW TO USE THIS WORKBOOK
This workbook is designed to be studied and filled out by a trainee in conjunction with a
trainer.
You are therefore advised to go step by step through it with the help of your trainer. Do
not rush through it or try to understand it immediately, but allow your trainer to take you
chapter by chapter, step by step, exercise by exercise.
To complete this workbook, use the answers in the recommended sections of the
handbook to fill out your workbook. If you do this, you will then have a business plan that
you understand and which you can present to a lending institution.
What is a business plan?
In a business plan, you think about and work out what will happen in a business.
This will help you put your business in order, plan how your business will grow and see
the problems you may face when it starts.
A business plan has a number of parts to it.
PARTS OF A BUSINESS PLAN
I)
II)
III)
IV)
V)
VI)
VII)
Title page
Summary
Goals for your business
Management and organization
Marketing plan
The work plan
The financial plan
- Start-up capital
- Projected income statement
- Cash flow plan
- Break even analysis
- Balance Sheet
- Profit and loss statement
A business plan will help you:
z Understand your business better,
z Expand and improve your business,
z Decide whether to continue in business or not,
z It can help you start looking for financial assistance,
z It also helps you prepare for the future of your business.
*You should revise your business plan every year.
EXECUTIVE BUSINESS
PLAN SUMMARY
To answer this section please refer to page 98 and 99 of
YOUR BUSINESS PLAN HANDBOOK
EXECUTIVE BUSINESS PLAN SUMMARY
The business (group) __________________________located in _______________
It was formed for the following purposes _________________________________
_____________________________________________________________________
Since we were formed we have accomplished _____________________________
_____________________________________________________________________
In the next year, we plan to _____________________________________________
_____________________________________________________________________
We produce (or render service) _________________________________________
_____________________________________________________________________
We sell our products or services to ______________________________________
_____________________________________________________________________
We have a plan of activities to produce our product/service outlined in the following
Business plan.
Decisions are made by ________________________________________________.
We expect to make a profit of _________________during __________________ .
We will use the profit to _______________________________________________
_____________________________________________________________________.
If the activity goes as planned the benefit to the group and the community will be
__________________________________________________________________
_____________________________________________________________________
Our cash flow analysis shows that we will have enough money to pay our
bills on the requested loan of ________________________ which will be used to
_____________________________________________________________________
We will repay the loan by ____________ with money from the sales of _______
_____________________________________________________________________
LOAN REQUEST
(Complete only if seeking a loan)
Business (Group) _____________________________________________________
How large a loan do you need? _________________________________________
_____________________________________________________________________
When will you need the money? ________________________________________
______________________________________________________________________
How will the money from the loan be used? ______________________________
_____________________________________________________________________
_____________________________________________________________________
How will the loan help you make a profit? _______________________________
_____________________________________________________________________
_____________________________________________________________________
What security do you have to guarantee the loan’? ________________________
_____________________________________________________________________
_____________________________________________________________________
When will you repay the loan? __________________________________________
_____________________________________________________________________
How will you be able to repay the loan? Where will you get the money to repay the
loan?
_____________________________________________________________________
_____________________________________________________________________
Why do you think you should receive the loan? ___________________________
BYLAWS
To answer this section please refer to page 11 to 18 of
YOUR BUSINESS PLAN HANDBOOK
(This section is only relevant to groups and not to individuals.)
PURPOSE OF THE BUSINESS GROUP.
A)
The purpose of the group is to:
_______________________________________________________________
_______________________________________________________________
MEMBERSHIP OF THE GROUP.
A)
The requirements for membership are:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
To remain a member in good standing, members must:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
C)
The following action will be taken when members:
Do not attend meetings:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Misuse money:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Do not contribute money:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
Neglect group work:
_______________________________________________________________
______________________________________________________________
D)
The following is a list of members of the group:
______________________________________________________________
______________________________________________________________
______________________________________________________________
LEADERSHIP OF THE GROUP
A)
The officers will be Chairman, Vice - chairman, Secretary and Treasurer. They
must be members of the group in good standing.
_______________________________________________________________
_______________________________________________________________
B)
The officers will serve a term of _________________ (months).
C)
The officers will be elected
_______________ (date).
by
the
members
of
the
meeting
on
The actions of all officers shall be fully transparent. They shall account to the
members upon request.
D)
The duties of the officers are as follows:
Chairman be the spokesman for the group, preside at meetings, maintain
order at meetings, direct the activities of the group between meetings.
_______________________________________________________________
_______________________________________________________________
Vice Chairman -- acts in place of the chairman when the chairman is unable to
act. Carries out other activities as designated by the chairman.
_______________________________________________________________
_______________________________________________________________
Secretary -- records minutes of meetings, keeps the list of all group
members, keeps record of all group activities and meetings.
_______________________________________________________________
______________________________________________________________
E)
If an office is vacant for any reason, the members shall elect a replacement at
the next regular meeting.
F)
Records will be taken of all proceedings of meetings conducted.
FINANCES
A)
The treasurer shall be responsible to keep the following records of the
group.
_______________________________________________________________
_______________________________________________________________
B)
All records of the group shall be available for inspection by group members who
give at least __________________ (time) notice of their desire to inspect.
C)
Any expenditure of group money over _______________ shall require
the approval of two officers.
D)
The treasurer shall keep no more than ______________ (amount) of the group's
funds in cash and the rest shall be deposited in the bank account.
E)
If an official of the group carries out the theft, or other illegal actions,
disciplinary actions and/or criminal proceedings shall be taken against
that
official.
F)
The profits of the group will be distributed ________________ (when).
G)
The profits of the group will be divided among members by:
_______________________________________________________________
_______________________________________________________________
Treasurer -- keep the financial records of the group, be ready to report
the
financial status at meetings, collect money due to the group, open and maintain a bank
account for the group. The treasurer shall be
personally responsible for the funds
of the group.
_______________________________________________________________
_______________________________________________________________
THE EXECUTIVE COMMITTEE
A)
The executive committee shall be composed of the officers of the group.
B)
The executive committee may act on behalf of the group on day to day matters
between meetings. The executive committee may act in emergency situations on
behalf of the group. Major decisions should be presented at meetings of the
entire group if possible. Any decisions of the executive committee shall be ratified
by the next regular or special meeting of the group.
MEETINGS
A)
The regular meetings of the group will be held:
_______________________________________________________________
_______________________________________________________________
B)
The executive committee may act on behalf of the group on day-to-day matters
between meetings. The executive committee may act in emergency situations on
behalf of the group. Major decisions should be presented at meetings of the
entire group if possible. Any decisions of the executive committee shall be ratified
by the next regular or special meeting of the group.
MEETINGS
A)
The regular meetings of the group will be held:
_______________________________________________________________
_______________________________________________________________
B)
Special meetings of the group can be called by two of the officers. They shall
notify members at least ____________ before the special meeting
except
in
emergencies.
HOW THE GROUP WILL SOLVE CONFLICT
The group will handle conflict in the following ways:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
The group will reduce chances of conflict by:
______________________________________________________________________
______________________________________________________________________
__
______________________________________________________________________
The group will maintain trust by:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
VOTING
A)
Officers can be removed from office by a vote of _____________ of all the
members of the group, at a meeting of the group.
B)
The bylaws can be changed by a vote of a ______________ of all the
members of the group at a meeting of the group.
C)
The group shall be dissolved under the following circumstances:
On completion of tasks for which the group was formed by a vote of
___________ % of the membership.
ASSETS
A)
When the group dissolves, the assets of the group will be:
_______________________________________________________________
_______________________________________________________________
B)
The bylaws were adopted by the group on ___________________ (Date).
GOALS FOR
THE BUSINESS
To answer this section please refer to page 21 and 22 of
YOUR BUSINESS PLAN HANDBOOK
GOALS FOR THE BUSINESS
THE REASONS FOR THE BUSINESS.
A)
Products or services to be produced are:
_______________________________________________________________
_______________________________________________________________
B)
Personal reasons for starting a business:
_______________________________________________________________
_______________________________________________________________
C)
Group reasons for starting a business:
_______________________________________________________________
_______________________________________________________________
D)
Benefits of the business to the community:
_______________________________________________________________
_______________________________________________________________
THE ACHIEVEMENTS AS A BUSINESS OR BUSINESS GROUP.
A)
What the business has been able to do since it began:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Grants received by the business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
C)
Loans received by the business and repayment history:
_______________________________________________________________
_______________________________________________________________
D)
Other sources of funds received by the business:
_______________________________________________________________
_______________________________________________________________
E)
Problems faced by the business:
_______________________________________________________________
_____________________ __________________________________________
_______________________________________________________________
GOALS
A)
Intended accomplishments of the business in the next:
Six months:
_______________________________________________________________
_______________________________________________________________
One year:
_______________________________________________________________
_______________________________________________________________
Three years:
_______________________________________________________________
_______________________________________________________________
MANAGEMENT
AND ORGANIZATION
To answer this section please refer to page 25 and 27 of
YOUR BUSINESS PLAN HANDBOOK
MANAGEMENT AND ORGANIZATION OF THE BUSINESS
EMPLOYEES REQUIRED FOR EACH ACTIVITY
A)
ACTIVITY
NUMBER OF LABORERS
___________________________________ _______________________
___________________________________ _______________________
___________________________________ _______________________
________________________________ _____________________
________________________________ _____________________
________________________________ _____________________
B)
Number of hired employees: _______________________________
C)
Number of family or group members: _______________________
D)
Total number of laborers in the business: ___________________
EMPLOYEE PAYMENT AND MOTIVATION
How much staff will be paid:
A)
Management: _____________________________
B)
Hired labor: _____________________________
C)
Family or group labor: ____________________
D)
Labor will be motivated to work hard by:
__________________________________________________________
__________________________________________________________
__________________________________________________________
MARKETING PLAN
To answer this section please refer to page 33 and 40 of
YOUR BUSINESS PLAN HANDBOOK
PRODUCT
A)
Product or service produced by the business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Need or want that the product or service meets:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
C)
Customers:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
D)
Difference with other similar goods or services:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
E)
Why customers buy from us:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
PRICE.
A)
Cost of product or service:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Amount customers are willing and able to pay:
______________________________________________________________
_______________________________________________________________
_______________________________________________________________
C)
Price that other businesses charge for providing similar products or
services:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
D)
Price charged by our business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
E)
Reason for prices:
_______________________________________________________________
_______________________________________________________________
__________________________________________________________
PLACE.
A)
Location of the business and how it operates:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Distance from suppliers:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
C)
Location of customers:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
D)
How will the business get new customers:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
PROMOTION.
A)
How we will promote about the business to attract people to buy.
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
CUSTOMERS.
A)
Sex of the people who buy from the business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Age group of customers:
Below 16 yrs.
C)
16 - 25yrs.
26 - 35yrs.
36 - 40yrs.
over 40yrs.
How customers are treated in the business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
YOUR COMPETITION.
A)
Others in the area providing the same goods and services as our business:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
B)
Number of customers going to our major competitor ________________
C)
Our major competitor is getting bigger/smaller.
D)
How will we attract additional customers:
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
E)
Comparison of our business with our major competitors:
Better
Same
Worse
____________________________________________________________________
Quality of your goods or services
____________________________________________________________________
Easy for customers to reach your business
____________________________________________________________________
Price of your goods and services
____________________________________________________________________
Appearance of your business
____________________________________________________________________
What customers say about your business
____________________________________________________________________
F)
The following changes will be made to our business so that more people buy
from us:
_______________________________________________________________
_______________________________________________________________
THE WORK PLAN
To answer this section please refer to your answer to step 6 on page 45 of
YOUR BUSINESS PLAN HANDBOOK
Seasonal Requirements
Work Plan for
Seasonal Activity
Duration of Activity
Estimated Start Date
Labor Requirements
Period - Weeks, Months or Acres
Task & (Period)
No. of Laborers
No. of Periods
Rate Per
Period
Total Cost
Total Labor Cost =
Seasonal Requirements
Work Plan for
Seasonal Activity
Duration of Activity
Estimated Start Date
Material Requirements
Material &
(Period)
Units per
Period
No. of Periods
Cost Per Period Total Cost
Total Material Cost =
Total Activity Cost (Labour + Materials) =
START-UP CAPITAL
To answer this section please refer to your answer on
the table on page 52 of YOUR BUSINESS PLAN HANDBOOK
START-UP CAPITAL
START -UP CAPITAL
SHS.
A) INVESTMENT
1. TOTAL MONEY FOR LAND AND
BUILDINGS
2. TOTAL MONEY FOR EQUIPMENT, +
TOOLS AND FURNITURE etc.
TOTAL INVESTMENTS
B) WORKING CAPITAL
1. TOTAL
MONEY
FOR
RAW
MATERIALS OR FINISHED GOODS
2. TOTAL MONEY FOR WAGES
+
3. TOTAL MONEY FOR RENT
+
4.TOTAL MONEY FOR OTHER COSTS
+
TOTAL WORKING CAPITAL
TOTAL START-UP CAPITAL
PROJECTED INCOME
STATEMENT
To answer this section please refer to your answer to the table
on page 66 and 67 of YOUR BUSINESS PLAN HANDBOOK
PROJECTED INCOME STATEMENT FOR.......................................................
Details
Months
Jan
.
Sales
Less DIRECT
MATERIAL
COSTS
Less DIRECT
LABOR
Feb.
Mar.
Apr.
May
June
Sub
Total
COSTS
GROSS
PROFIT
INDIRECT
COSTS
Rent for land
Rent of
Building
Electricity
Water
Worker’s
salary
Owner’s salary
Stationary
Furniture
Loan Interest
Tax
Depreciation
Others
Total
Costs
Indirect
NET PROFIT
(Gross profit
minus Total
Indirect Costs
PROJECTED INCOME STATEMENT FOR.......................................................
Details
Months
Jan
.
Sales
Less DIRECT
MATERIAL
COSTS
Feb.
Mar.
Apr.
May
June
Sub
Total
Less DIRECT
LABOR
COSTS
GROSS
PROFIT
INDIRECT
COSTS
Rent for land
Rent of
Building
Electricity
Water
Worker’s
salary
Owner’s salary
Stationary
Furniture
Loan Interest
Tax
Depreciation
Others
Total
Costs
Indirect
NET PROFIT
(Gross profit
minus Total
Indirect Costs
CASH FLOW PLAN
To answer this section please refer to your answer to the table on page 75 of
YOUR BUSINESS PLAN HANDBOOK
YOUR CASH FLOW PLAN.
CASH FLOW PLAN
MONTHS
JAN
SOURCES OF CASH
1. CASH AT THE START
OF THE MONTH
2. CASH IN FROM SALES
3. CASH FROM MEMBERS
4. MONEY RECEIVED
FROM DEBTORS
5. CASH LOAN RECEIVED
6. CASH GRANT
RECEIVED
FEB
MAR
APRIL
MAY
JUNE
7. ANY OTHER CASH IN
8. TOTAL CASH IN (SUM OF
NO.2 THROUGH NO.7)
USES OF CASH
9. CASH OUT FOR DIRECT
MATERIAL COSTS
10.
CASH
OUT
FOR
DIRECT LABOR COSTS
11. CASH OUT FOR
INDIRECT COSTS
12. CASH OUT FOR
PLANNED INVESTMENT IN
EQUIPMENT
13. CASH OUT TO
MEMBERS
14. LOAN PRINCIPAL
REPAID
15. LOAN INTEREST PAID
16. ANY OTHER CASH
OUT
17. TOTAL CASH OUT
18. MONTHLY NET (No. 8 N0. 17)
19. CASH AT THE END OF
THE MONTH (No. 1 - No.
18)
YOUR CASH FLOW PLAN.
CASH FLOW PLAN
MONTHS
JAN
SOURCES OF CASH
1. CASH AT THE START
OF THE MONTH
2. CASH IN FROM SALES
3. CASH FROM MEMBERS
4. MONEY RECEIVED
FROM DEBTORS
5. CASH LOAN RECEIVED
6. CASH GRANT
RECEIVED
FEB
MAR
APRIL
MAY
JUNE
7. ANY OTHER CASH IN
8. TOTAL CASH IN (SUM OF
NO.2 THROUGH NO.7)
USES OF CASH
9. CASH OUT FOR DIRECT
MATERIAL COSTS
10.
CASH
OUT
FOR
DIRECT LABOR COSTS
11. CASH OUT FOR
INDIRECT COSTS
12. CASH OUT FOR
PLANNED INVESTMENT IN
EQUIPMENT
13. CASH OUT TO
MEMBERS
14. LOAN PRINCIPAL
REPAID
15. LOAN INTEREST PAID
16. ANY OTHER CASH
OUT
17. TOTAL CASH OUT
18. MONTHLY NET (No. 8 N0. 17)
19. CASH AT THE END OF
THE MONTH (No. 1 - No.
18)
BREAK EVEN
ANALYSIS
To answer this section please refer to your answer to the table on page 83, if you
are, providing many products or service's or page 85 if your are providing one
product or service in YOUR BUSINESS PLAN HANDBOOK
BREAK EVEN POINT SALES LEVEL
I. CALCULATE GROSS PROFIT
TOTAL SALES IN YOUR BUSINESS
SHS.
/=
Less
TOTAL DIRECT COSTS (DIRECT
MATERIAL COSTS AND DIRECT
LABOR COSTS)
GROSS PROFITS
II. CALCULATE GROSS MARGIN
SHS
SHS
GROSS MARGIN = GROSS PROFIT
TOTAL SALES
---------------------GROSS MARGIN
0
--------------------III. CALCULATE TOTAL INDIRECT COST
INDIRECT COSTS
Rent for land
Rent of building
Electricity
Water
Workers' salary
Stationery
Furniture
Loan interest
Tax
Depreciation
TOTAL INDIRECT COST
IV. BREAK EVEN POINT SALES LEVEL
TOTAL INDIRECT COSTS
GROSS MARGIN
BREAK EVEN POINT SALES LEVEL
BREAK EVEN POINT PRICE LEVEL FOR _________________________________
I. CALCULATE TOTAL COST
TOTAL COST
=
DIRECT COST + INDIRECT COST
TOTAL COST
II. CALCULATE TOTAL YIELD
= NUMBER OF PRODUCTS PRODUCED IN
THEIR UNITS OF MEASUREMENT e.g. Kg.
TOTAL YIELD
TOTAL YIELD
=
III. CALCULATE BREAK EVEN POINT PRICE LEVEL
BREAK EVEN POINT PRICE
LEVEL (TOTAL COST OF
MANUFACTURING A GOOD
_____________________________
__
TOTAL YIELD OR TOTAL PRODUCTION OF
THE
GOOD)
____________________________
THE BALANCE SHEET
BALANCE SHEET FOR .........................................................
ASSETS
CURRENT ASSETS
1.
2.
3.
Cash
Items in the store
Money other people owe to your business
SHILLINGS
+
+
+
TOTAL CURRENT ASSETS
FIXED ASSETS
1.
2.
3.
4.
5.
6.
Land
Buildings
Machinery
Tools
Equipment
Furniture
TOTAL FIXED ASSETS
+
+
+
+
+
TOTAL ASSETS (TOTAL CURRENT + TOTAL
FIXED)
LIABILITIES
SHILLINGS
CURRENT LIABILITIES
1.
2.
3.
4.
Interest on short term loans, long term loans
Taxes
Wages and salaries earned but not paid
Money owed to other businesses for goods
purchased on credit
+
+
+
+
TOTAL CURRENT LIABILITIES
LONG TERM LIABILITY
1.
2.
3.
4.
Loans incurred to buy land
Loans incurred to buy buildings
Loans incurred to buy equipment
Loans incurred to start a business
+
+
+
+
TOTAL LONG TERM LIABILITY
TOTAL LIABILITY (TOTAL CURRENT +
TOTAL LONG TERM)
OWNERS EQUITY
(TOTAL ASSETS - TOTAL LIABILITY)
TOTAL LIABILITY PLUS OWNERS
EQUITY
SHILLINGS
+
PROFIT AND LOSS
STATEMENT
To answer this section please refer to your answer to the table on page 95 of
YOUR BUSINESS PLAN HANDBOOK
PROFIT AND LOSS STATEMENT
TOTAL SALES
Less
MATERIAL COSTS
Less
DIRECT LABOR COSTS
GROSS PROFIT
Less
INDIRECT COSTS
Rent for land
Rent of building
Electricity
Water
Workers salary
Stationary
Furniture
...................................................
Loan interest
Tax
Depreciation
Others
TOTAL INDIRECT COSTS
NET PROFIT